Mumbai, November 27, 2025 — Indian equity markets continued their strong upward momentum on Thursday, with the Nifty 50 index climbing to a new 14-month high. The rally was fueled by improving corporate earnings sentiment and rising expectations that the Reserve Bank of India (RBI) may announce a 25-basis-point rate cut in its upcoming December policy meeting.
According to recent analyst surveys, the RBI is likely to reduce the repo rate to 5.25%, supported by cooling food inflation, easing commodity prices and recent tax cuts that have softened consumer pressures. Economists believe this could stimulate credit growth and provide relief to several interest-sensitive sectors.
Market experts remain optimistic about the earnings outlook. InCred Asset Management projects a 10–12% growth in Nifty earnings over the coming quarters, with PSU banks, NBFCs, mid-cap manufacturing, and industrials expected to be key outperformers.
Meanwhile, research by rating agency ICRA suggests that India Inc. may post an 8–10% revenue rise in Q3 and Q4, backed by festive-season demand, GST reductions on key categories, and improving rural consumption trends.
The positive macro backdrop has strengthened investor confidence, leading to increased retail participation and fresh institutional inflows. Analysts say that if the RBI goes ahead with the December rate cut, liquidity conditions could improve further, potentially extending the current market rally.
However, experts also warn that global uncertainties — including currency volatility and foreign investment flows — may pose risks in the near term. Investors are advised to maintain portfolio diversification and monitor policy signals closely.
